Panama and First Quantum Minerals Ltd. are reportedly close to reaching an agreement to save the Canadian mining company’s Cobre Panama copper mine project. The two sides have been in talks for months over the future of the project, which has been stalled for several years due to a dispute over royalty payments and other issues.
The negotiations have been complicated by the economic crisis caused by the coronavirus pandemic, which has led to a sharp drop in the price of copper. Under the proposed agreement, First Quantum would pay a one-time royalty payment of $800 million to the Panamanian government. In exchange, the company would receive a 20-year extension on its mining license, as well as a waiver on certain taxes and fees. The agreement would also include an assurance that First Quantum would invest an additional $3.5 billion to complete the project.
The agreement is expected to be finalized in the coming days, and could be a major boon to the Panamanian economy. The project is expected to create thousands of jobs and generate billions in tax revenue. It is also expected to help Panama become a major player in the global copper market.
